The Long-Run Trends of Relative Prices of Primary Products Suggest

question 35

Multiple Choice

The long-run trends of relative prices of primary products suggest that the countries that are dependent on the export of primary products are most likely to:

• A)experience deterioration in their terms of trade.
• B)experience improvement in their terms of trade.
• C)be able to import more from abroad.
• D)experience an increase in their growth rates.

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Definitions:

Collateral Promises

Secondary agreements that are ancillary to a primary contractual obligation, requiring the fulfilment of another condition or obligation.

Primary Obligations

Primary obligations are the main or chief duties, liabilities, or responsibilities that a party is contractually or legally bound to perform.

Secondary Obligations

Duties or responsibilities that arise as a result of failing to fulfill a primary obligation, such as penalties or damages.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify the legal rules around sales, leases, negotiable instruments, and secured transactions among states.